Swiss mobile group Sunrise has cut the average cost of interest it pays on its debt after completing a series of refinancing transactions totalling SFr2.36bn (US$2.49bn) following its IPO.
The listing generated proceeds of SFr1.36bn (US$1.43bn) for…
Swiss mobile group Sunrise has cut the average cost of interest it pays on its debt after completing a series of refinancing transactions totalling SFr2.36bn (US$2.49bn) following its IPO.
The listing generated proceeds of SFr1.36bn (US$1.43bn) for Sunrise and the operator used this sum, along with a SFr1bn (US$1.05bn) drawdown under its term loan B facilities, to address its capital structure.
In a statement, Sunrise said it had reduced the blended average cost of its debt to 2.4%, down from the pre-IPO guidance of 3-3.25%.
The Zurich-based operator has redeemed the SFr300m and €275m tranches of its PIK toggle notes due 2019, its SFr370m 5.625% senior secured notes due 2017, and €167m of floating rate senior secured notes due 2017 in full.
It also used the proceeds, in tandem with a new SFr500m senior secured issue, to buy back the outstanding notes from its €496m and SFr300m 7% senior secured notes due 2017, which were sold in 2010.
The total value of the IPO was SFr2.27bn, a significant amount of which went to London-based private equity house CVC Capital Partners, which has owned the operator since 2010. Sunrise shares priced at the mid-point of its expected range and the banks working on the deal chose to exercise the green shoe, which saw CVC shed a further 4.1 million shares. The firm now owns 25% of Sunrise, with the remaining 75% floating on the SIX Swiss Exchange.
CVC and the board of directors now have a six-month lock-up period before the firm can sell more shares, and 12 months for the company, although this is subject to customary exceptions.
It has been speculated that Sunrise and competitor Orange Switzerland, which was recently sold to telecoms magnate Xavier Niel, could seek to merge again.
